cliftyhanger
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| posted on 21/3/11 at 12:38 PM |
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£8bn.........
http://www.bbc.co.uk/news/business-12800725
I think the reporters have got it all upside down. Surely the headline should be "we borrowed £8bn less than we expected"
Since when has not getting further into debt been a windfall 
Seems like because we haven't borrowed the full £148bn, some reckon we should just blow the extra. Righty ho, now guess why we are up the creek
without a paddle................
edit. To put it in perpective they have borrowed about £2200 for every person in the country (approx) and save an additional £130. So there is a long
long way to go. Where can we cut govt spending to get it all down to zero??
[Edited on 21/3/11 by cliftyhanger]
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DRC INDY 7
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| posted on 21/3/11 at 12:53 PM |
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It never will be zero we always borrow that's the way the system works
https://www.facebook.com/groups/462610273778799/
Puddle Dodgers Club
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smart51
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| posted on 21/3/11 at 01:18 PM |
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Some say the government is cutting too fast. As such, being £8bn ahead of target gives them room to slow down a bit, making the cuts less painfull.
Others say the sooner you get the deficit down, the less the overal impact of the cuts. Less for longer or more for a shorter time. Who can tell
which is best. If economists know what they're talking about, how come we're in this mess?
quote:
Originally posted by DRC INDY 7
It never will be zero we always borrow that's the way the system works
It doesn't have to be. You can run at a zero structural deficit. People like governments who spend and dislike those who tax, so governments
spend more than they tax. We only have ourselves to blame. A certain Mr Keyens, a liberal economist from 100 years ago, said economies should run at
a surplus in the boom years so that in recessions you could keep providing public services. If they'd done that over the past 15 years, we
wouldn't have this problem now. The trouble started when Gordon Brown ended "prudence" and started to buy favour with the public.
If you spend more than you earn, like he did, and then your income drops by 25% you're (or more accurately we're) screwed.
Do you think the cuts are bad? Do the tax rises hurt? Only after another 3 years will spending match income. Then we'll have the
£1,100,000,000,000 debt to pay back, costing £120,000,000 per day in interest. It is not going to get better any time soon. We've had the
party and now we're left to clean up the mess.
[Edited on 21-3-2011 by smart51]
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GeorgeM
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| posted on 21/3/11 at 01:33 PM |
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It doesn't have to be. You can run at a zero structural deficit. People like governments who spend and dislike those who tax, so governments
spend more than they tax. We only have ourselves to blame. A certain Mr Keyens, a liberal economist from 100 years ago, said economies should run at
a surplus in the boom years so that in recessions you could keep providing public services. If they'd done that over the past 15 years, we
wouldn't have this problem now. The trouble started when Gordon Brown ended "prudence" and started to buy favour with the public.
If you spend more than you earn, like he did, and then your income drops by 25% you're (or more accurately we're) screwed.
Do you think the cuts are bad? Do the tax rises hurt? Only after another 3 years will spending match income. Then we'll have the
£1,100,000,000,000 debt to pay back, costing £120,000,000 per day in interest. It is not going to get better any time soon. We've had the
party and now we're left to clean up the mess.
[Edited on 21-3-2011 by smart51]
Hooray, There is someone else who understands basic economics then 
My conscience is clear - I drive a GREEN car
MNR Racing
essexkitcarclub.com
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watsonpj
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| posted on 21/3/11 at 02:08 PM |
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+1 the parties over. Most of us have pretty much what we want and our national credit cards getting near the limit, and when it does you have to get
to the high interest lending and then it really hurts.
so we have:-
a very poor economic position.
an aging population
and very little industry
we have to make cuts as a nation and change the trade deficit or we could all pay a lump sum I think it is only about 13.5K each. Come on guys hands
in pockets
look on the bright side our deficit is .89Trillion for 61M people
the US is
14Trillion for 300M people by the looks of it.
looks like a few years of being less well off for most
Pete
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cliftyhanger
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| posted on 21/3/11 at 02:23 PM |
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I don't know much about economic theory. More a hands on chappie and a bit of chemistry.
But I do know it is best to spend no more than your income, otherwise you get into debt. Some debts are OK (mortgage for instance) but best avoided on
the whole.
thats what my Dad taught me
Maybe he should have given a few politicians lessons too over breakfast I reckon if it applies to individuals it shloud work on a bigger scale.
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daviep
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| posted on 21/3/11 at 02:47 PM |
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quote:
Originally posted by DRC INDY 7
It never will be zero we always borrow that's the way the system works
Can you explain this?
Cheers
Davie
“A truly great library contains something in it to offend everyone.”
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Ninehigh
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| posted on 23/3/11 at 02:04 AM |
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quote:
Originally posted by watsonpj
looks like a few years of being less well off for most
Pete
If we get any less well off I'm going to have to give up this job... Going to work is the final thing for me to cut back on!
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David Jenkins
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| posted on 23/3/11 at 09:15 AM |
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quote:
Originally posted by cliftyhanger
I don't know much about economic theory. More a hands on chappie and a bit of chemistry.
But I do know it is best to spend no more than your income, otherwise you get into debt. Some debts are OK (mortgage for instance) but best avoided on
the whole.
thats what my Dad taught me
Your dad must have gone to the same school as my dad - example - "If you really want something, save up for it. By the time you've got
enough money you may decide that you don't need the thing anyway".
What really pees me off is that I have worked hard to get rid of all my debts, so now I don't owe anything apart from the usual utility bills
and council tax. Last week our financial adviser told us that I have sufficient savings to retire a little early (at 59) as long as I don't get
too careless with my money. So, all in all, a "model citizen who plans responsibly". But as far as the government is concerned I
don't spend enough to help the economy, I get taxed left, right and centre, and in a short time I'll probably have trouble getting a
credit card because I don't have a current track record of "responsible borrowing".
The whole approach to finance is screwed in this country, from individuals right up to the government...
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smart51
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| posted on 23/3/11 at 09:47 AM |
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quote:
Originally posted by David JenkinsThe whole approach to finance is screwed in this country, from individuals right up to the
government...
Not just here. The whole western world is the same - and increasingly the eastern world too. Big business makes to much money out of lending for
them to let us give it up, apart from a few individuals like you and me.
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